Corporate BTC treasuries are a threat to market stability
The post Corporate BTC treasuries are a threat to market stability appeared on BitcoinEthereumNews.com.
Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial. Comparing this year’s Bitcoin (BTC) chart to the U.S. dollar’s DXY index makes for a stark contrast. While Bitcoin has soared to new heights, breaching the $120,000 threshold, the DXY has had a rough year — down nearly 10% this year to date — and is predicted to keep falling in the foreseeable future. In this environment, it’s perhaps unsurprising that more and more companies are turning to Bitcoin as an alternative asset to prop up their treasuries. But this seemingly innocuous trend could quickly turn into a threat not only to Bitcoin itself, but to the wider financial market. Summary Bitcoin’s narrative flipped. Once battling regulators, BTC is now embraced by states, institutions, and treasuries, while the SEC softens its stance. Strategy’s playbook is unique. Michael Saylor’s first-mover advantage, low entry price, and favorable debt terms mean he can weather downturns others cannot. If multiple leveraged firms panic-sell, Bitcoin’s entanglement with ETFs, pensions, and governments could amplify market shocks. The lesson: Saylor’s success is not a blueprint. Companies should strengthen fundamentals instead of betting their balance sheets on volatile assets. Only a year ago, $100,000 for Bitcoin was still a distant dream, while crypto was battling U.S. regulators and struggling to recover its image after the disastrous collapse of 2022. But what a difference a year makes. Fast forward to today, and the SEC has dropped or settled the majority of its lawsuits against crypto firms and has signalled a far more accommodating stance. Meanwhile, Bitcoin is increasingly being adopted as a reserve asset by a number of U.S. states and several emerging market governments. The attitude towards Bitcoin has completely changed. Not only that, but…
